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You have five credit cards each with a $1,000 limit, making your total available credit $5,000. Your regular monthly credit card expenses total $1,000. Your credit utilization ratio is 20 percent ...
A credit card issuer has the right to close your credit card if you don’t use it. Unfortunately, closing an account can have an adverse effect on your credit score.
If you were to close an unused credit card that has a $2,000 limit, your total available credit drops to $8,000, and your balance now represents 25% of your available credit.
Closing your only credit card can affect your credit mix. Your credit mix refers to the different types of credit accounts you have. That includes revolving accounts, like credit cards, and ...
Let's say that you have one credit card with a $1,000 balance and a $4,000 limit, and another credit card with no balance and a $1,000 limit. Currently, you're using 20% of your available credit ...
If an unused credit card has a high credit limit or a long-established credit history, closing it could negatively impact a cardholder's credit score. It is usually better to leave these cards open.
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